Freddie Mac 2010 Annual Report Download - page 177

FREDDIE MAC
CONSOLIDATED STATEMENTS OF OPERATIONS
2010 2009 2008
Year Ended December 31,
(in millions, except share-related amounts)
Interest income
Mortgage loans:
Held by consolidated trusts ................................................. $ 86,698 $ — $ —
Unsecuritized . . . ....................................................... 8,727 6,815 5,369
Total mortgage loans ................................................... 95,425 6,815 5,369
Investments in securities. . . . ................................................. 14,375 33,290 35,067
Other . . . .............................................................. 156 241 1,041
Total interest income ..................................................... 109,956 40,346 41,477
Interest expense
Debt securities of consolidated trusts . . .......................................... (75,216) — —
Other debt .............................................................. (16,915) (22,150) (33,332)
Total interest expense ..................................................... (92,131) (22,150) (33,332)
Expense related to derivatives ................................................. (969) (1,123) (1,349)
Net interest income .......................................................... 16,856 17,073 6,796
Provision for credit losses . . . . ................................................. (17,218) (29,530) (16,432)
Net interest income (loss) after provision for credit losses ................................ (362) (12,457) (9,636)
Non-interest income (loss)
Gains (losses) on extinguishment of debt securities of consolidated trusts . . . ................ (164) — —
Gains (losses) on retirement of other debt ......................................... (219) (568) 209
Gains (losses) on debt recorded at fair value . . . .................................... 580 (404) 406
Derivative gains (losses) . . . . ................................................. (8,085) (1,900) (14,954)
Impairment of available-for-sale securities:
Total other-than-temporary impairment of available-for-sale securities . . . . ................ (1,778) (23,125) (17,682)
Portion of other-than-temporary impairment recognized in AOCI ....................... (2,530) 11,928 —
Net impairment of available-for-sale securities recognized in earnings . . ................ (4,308) (11,197) (17,682)
Other gains (losses) on investment securities recognized in earnings ....................... (1,252) 5,965 1,501
Other income (Note 23) . . . . ................................................. 1,860 5,372 1,345
Non-interest income (loss) ..................................................... (11,588) (2,732) (29,175)
Non-interest expense
Salaries and employee benefits . . . . . . .......................................... (895) (912) (828)
Professional services ....................................................... (246) (310) (262)
Occupancy expense . ....................................................... (64) (68) (67)
Other administrative expenses ................................................. (341) (361) (348)
Total administrative expenses. . . . . . .......................................... (1,546) (1,651) (1,505)
Real estate owned operations expense . .......................................... (673) (307) (1,097)
Other expenses (Note 23) . . . ................................................. (713) (5,237) (3,151)
Non-interest expense ......................................................... (2,932) (7,195) (5,753)
Loss before income tax benefit (expense) . .......................................... (14,882) (22,384) (44,564)
Income tax benefit (expense) . . ................................................. 856 830 (5,552)
Net loss ................................................................. (14,026) (21,554) (50,116)
Less: Net (income) loss attributable to noncontrolling interest ........................... 1 1 (3)
Net loss attributable to Freddie Mac .............................................. (14,025) (21,553) (50,119)
Preferred stock dividends . . . ................................................. (5,749) (4,105) (675)
Amount allocated to participating security option holders . . . ........................... — — (1)
Net loss attributable to common stockholders ........................................ $ (19,774) $ (25,658) $ (50,795)
Loss per common share:
Basic.................................................................. $ (6.09) $ (7.89) $ (34.60)
Diluted . . .............................................................. $ (6.09) $ (7.89) $ (34.60)
Weighted average common shares outstanding (in thousands):
Basic.................................................................. 3,249,369 3,253,836 1,468,062
Diluted . . .............................................................. 3,249,369 3,253,836 1,468,062
Dividends per common share . . ................................................. $ — $ — $ 0.50
The accompanying notes are an integral part of these consolidated financial statements.
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